In a departure from recent tender offers in Europe, Spain’s Bankia had a higher-than-expected take-up, according to a release by Barclays Capital analyst Dipesh Mehta.

The bank ended up repurchasing €1.37 billion ($1.82 billion) spread among 14 RMBS tranches. It had offered to buy back a €2.38 billion consisting of 17 RMBS tranches.

“Contrary to previous tender offers seen this year, investor participation was far better,” Mehta wrote. “Given the performance concerns over many Spanish RMBS transactions, and in particular over the higher LTV levels seen in the Caja Madrid transactions, it is no surprise that investors took the opportunity to reduce their exposure.”

Caja Madrid joined with six other financial institutions in Spain to form Bankia in late 2010.  

The percentage of tranches actually repurchased is below.

Source: Tender offer announcement, Bloomberg



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